Journalize each problem

timer Asked: Feb 20th, 2015

Question Description

(1)  An accounting intern recently made the following entries.

May 2  Cash  $140,000

  Common Stock  $140,000

  (Issued 10,000 shares of common stock of $10 stated value at $14 per share.)

May 10  Cash  $700,000

    Preferred Stock   $700,000

  (Issued 10,000 shares of $50 par value preferred stock for $70 per share.)

May 15  Common Stock  $20,000

  Cash  $20,000

  (Purchased 1,000 shares of common stock for the treasury for $20 per share.)

May 31   Cash  $12,500

  Common Stock  $10.000

  Gain on Sale of Stock  $2,500

  (Sold 500 shares of treasury stock at $25 per share.) 

Based upon the explanation, make the correct entry for each of the above entries. No further explanation required.





(2)  Mary Me Not Corporation has $10 par value common stock is actively traded at a market price of $20 per share.  Mary issues 5,000 shares to purchase land advertising for sale at $120,000.  Journalize the issuance of the stock in exchange for the land.

(3)  On August 15, Joe Rainey Corporation purchases 500 shares of par value common stock for the treasury at a cash price of $10 per share.  On November 19, it sells 300 shares of the treasury stock for $15 per share.  Journalize the two transactions.

(4)  In and Out Retailers sell 2,000 shares of $200 par value preferred stock for $220 each.  Journalize the entry.

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